Legal Forms
SMALL CLAIMS CASE
9:14 AM
Did somebody borrows
you an amount of money Php200,000.00 or less and keep you scratching your head during
collection time? Worry no more, the Rule of
Procedure for Small Claims Cases
will help you solve the headache.
This
special rule provides a simpler and more inexpensive and expeditious means of
settling disputes involving purely money claims than the regular civil process.
The process is very simple and sometimes informal. It also allows the plaintiff
to sue a defendant without the need of a lawyer.
(NOTE: The Supreme Court (SC) has raised the amount of claims that fall within the jurisdiction of small claims court from P100,000.00 to P200,000.00 effective February 1, 2016). Scroll down for more pertinent provisions of the Rule in Question and Answer
Form)
The following are the MADE SIMPLE Steps in filing Small Claims Case
1. CHECK THE VALUE OF YOUR CLAIM.
a. The value of your claim should
not exceed Two Hundred Thousand Pesos (P200,000.00), exclusive of interest and
costs.
2. FILE THE CASE IN PROPER VENUE, either
a. MTC/MTCC/MCTC of the place
where you live
b. MTC/MTCC/MCTC of the place
where your borrower (debtor) lives
Note:
MTC - Metropolitan Trial Court
MTCC - Municipal Trial Courts in Cities
MCTC - Municipal Circuit Trial Courts
3. PROCEED TO THE OFFICE OF THE CLERK
OF COURT and FILL UP these FORMS
a. Information for the
Plaintiff
4. PRESENT DOCUMENTS to prove the loan, either
a. Promissory note
b. Demand letter
c. Contract signed by the
defendant/respondent
d. Affidavit of your witnesses
e. Other documents to prove the
loan
5. PAY THE FILING FEE
6. WAIT FOR THE ANSWER OF THE
RESPONDENT.
> The court will serve summons to the respondent for him/her to file a Verified Response to the Complaint within
a non-extendible period of ten (10) days from receipt of summons.
7. Check the
date of the hearing and be present,
otherwise the case will be dismissed.
Below is the 15 minutes video on how to file an small claims case in the Philippines. Take time to watch this informative and entertaining video.
PERTINENT PROVISIONS OF THE
RULE OF PROCEDURE FOR SMALL CLAIMS CASES
Q: What is the scope of this Rule?
A. The Rule of Procedure for Small Claims Cases governs the
procedure in actions for money claims before the Metropolitan Trial Courts,
Municipal Trial Courts in Cities, Municipal Trial Courts and Municipal Circuit
Trial Courts where the value of the claim does not exceed Two Hundred Thousand
Pesos (P200,000.00), exclusive of interest and costs.
Q: In what actions does the rule on
small claims apply?
A:
1. Those which are purely civil
in nature where the claim or relief prayed for by the plaintiff is solely for
payment or reimbursement of sum of money;
2. The civil aspect of criminal
actions either filed before the institution of the criminal action or reserved
upon the filing of a criminal action in court, pursuant to Rule 111 of the
Revised Rules of Criminal Procedure (Sec. 4); and
3. The enforcement of a
barangay amicable settlement or an arbitration award involving money claims
covered by the Rule, pursuant to Sec. 417 of the Local Government Code of 1991.
Q: What should the claims or
demands consist of?
A: The claims or demands may
be:
1. For money owed under any
of following:
a. Contract of lease;
b. Contract of loan;
c. Contract of services;
d. Contract of sale; or
e. Contract of mortgage.
2. For damages arising from
any of the following:
a. Fault or negligence;
b. Quasi-contracts; and
c. Contracts.
3. The enforcement of a
barangay amicable settlement or an arbitration award involving a money claim
covered by this rule pursuant to Sec. 417 of the Local Government Code of 1991 (Sec.
4).
Q: How does one start a small
claims case?
A: The plaintiff must first
accomplish a verified Statement of Claim
and certify the information
provided, stating that he has not filed any action involving the very same
issue in any other court, tribunal or agency through a verification and
certification of non-forum shopping.
The Statement of Claim must
be accompanied by certified
duplicate photocopies of all supporting documents.
The plaintiff then files the
Statement of Claim with its accompanying documents with the office of the clerk
of court of the small claims court, personally or through mail, and pays the
correct docket and filing fees prescribed under Rule 141 of the Revised Rules
of Court (Sec. 5).
If one is an indigent, he may apply to the small
claims court to qualify as an indigent, and once qualified, he is exempt from
payment of such fees (Sec. 8). However, in no case shall a party, even if declared an indigent, be
exempt from the payment of P1,000.00 fee for service of summons and processes
in civil cases (Sec. 8).
Q: When should the defendant file a
response?
A: The defendant shall file with the court and serve on the plaintiff a duly accomplished and verified response within
a non-extendible period of ten (10) days from receipt of summons. The response
shall be accompanied by certified
photocopies of documents, as well as affidavits of witnesses and other evidence
in support thereof. (Sec. 11).
No evidence shall be allowed
during the hearing which was not attached to or submitted together with the Claim
or Response, unless good cause is shown for the admission of additional
evidence.
Q: What is the effect if the defendant failed to file a response
within the required period?
A: Should the defendant fail
to file his Response within the required period, and likewise fail to appear at
the date set for hearing, the court shall render judgment on the same day, as
may be warranted by the facts. However, should the defendant fail to file his
Response within the required period but appears at the date set for hearing,
the court shall ascertain what defense he has to offer and proceed to hear,
mediate or adjudicate the case on the same day as if a Response has been filed
Q: Who are required to appear at
the hearing?
A: The parties shall appear at the hearing personally or through a
representative they may authorize under a Special
Power of Attorney to enter into an amicable settlement, to submit to
Judicial Dispute Resolution (JDR) and to enter into stipulations or admissions
of facts and of documentary exhibits (Sec. 16). However, appearance
through a representative must be for a valid cause. The representative of an
individual-party must not be a lawyer, and must be related to or next-of-kin of
the individual-party. Juridical entities shall not be represented by a lawyer
in any capacity (Sec. 16).
Q: What is the effect of
non-appearance of a party?
A.
1. If the plaintiff does not appear, the claim shall be dismissed without
prejudice.
2. If the defendant does not appear, the effect will be the same as failure
to file a Response.
3. If both parties do not appear, the claim and counterclaim shall be
dismissed with prejudice (Sec. 18).
Q: Are lawyers allowed at the
hearing?
A. Lawyers
are not allowed to appear
at the hearing unless they are the plaintiff or the defendant. However, since
the process is still a legal process, the parties and their authorized
representatives can still consult with a lawyer to assist them to prepare for
the hearing or for other matters outside the hearing (Sec. 17).
Q: Who is allowed to assist a party
who cannot properly present his claim or defense?
A: The court, in its
discretion, may allow another individual who is not a lawyer to assist the
party (Sec. 17).
Q: What is the duty of the Judge
during hearing?
A.
At the hearing, the judge shall exert efforts to
bring the parties to an amicable settlement of their dispute. Any settlement or
resolution of the dispute shall be reduced into writing, signed by the parties
and submitted to the court for approval.
After
the hearing, the court render its
decision on the same day, based on the facts established by the evidence. The decision is immediately entered by the Clerk
of Court in the court docket for civil cases and a copy thereof forthwith
served on the parties.
The
decision is final and unappealable, this
is in line with
the nature of small claims which is designed to preclude unmeritorious appeals
that result in long drawn litigation. The rule however, does not preclude a
party from filing a petition for certiorari under Rule 65 when there is
grave abuse of discretion amounting to lack or excess of jurisdiction in
relation to a judgment in a small claims action. Further, the aggrieved party
can also file an action for annulment of judgment when the requirements under
the Rules of Civil Procedure are complied with.
The author takes no responsibility for the validity, correctness and result of this work. The information provided is not a legal advice and it should not be used as a substitute for a competent legal advice from a licensed lawyer. See the disclaimer
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